AI Image Generator Market Size, Share & Trends Analysis Report By Component (Software, Services), By End-user (Media & Entertainment, Healthcare), By Region, And Segment Forecasts, 2024 - 2030

AI Image Generator Market Size & Trends

The global AI image generator market size was estimated at USD 349.6 million in 2023 and is expected to grow at a CAGR of 17.7% from 2024 to 2030. The rapid progress in deep learning and AI algorithms has greatly improved the capabilities of AI image generators. Innovations in neural network architectures, such as generative adversarial networks (GANs), have led to the generation of high-quality and realistic images. As these algorithms advance, the potential for artificial intelligence (AI) image generator applications expands, driving the market growth.

Artificial intelligence image generators offer efficient and cost-effective solutions for generating high-quality visual content, such as images, graphics, and illustrations, to meet this growing demand. For example, AI image generators are employed in creating visual effects for films, television shows, and commercials. They can generate realistic and visually stunning computer-generated imagery (CGI) elements, such as virtual environments, creatures, and simulations. AI image generators assist in the seamless integration of CGI with live-action footage, enhancing the overall visual impact of the content.

The rise of e-commerce and online shopping has increased the need for virtual try-on experiences and personalized visual content. AI image generators play a crucial role in enabling virtual try-on for fashion, accessories, and cosmetic products, allowing customers to visualize how these items would look on them. By providing personalized and interactive experiences, AI image generators enhance customer engagement and improve conversion rates. According to a report published by Stock image search engine Everypixel, nearly 15.5 billion AI-generated images have been created up to August 2023, with roughly 34 million new AI-generated images generated daily. For instance, a report from OpenAI dated August 2023 indicates that the AI image generator DALL-E and the ChatGPT platform have collectively amassed a user base exceeding 3 million active users. These users collaboratively generated over 4 million images on a daily basis.

Further, the growing prominence of NFTs has sparked an increase in demand for unique digital collectibles and artwork. This surge in demand resulted in the use of AI image generators to create original and exclusive visual content. This trend has helped legitimize AI-generated art as a form of artistic expression, subsequently fostering the expansion of the AI image generator market.

Market Concentration & Characteristics

The AI image generator market is witnessing a high degree of innovation, with advancements in deep learning algorithms, neural networks, and generative adversarial networks (GANs). Innovations in AI architectures are leading to more realistic and diverse image generation capabilities, enabling applications across various industries such as gaming, design, and fashion.

Mergers and acquisitions (M&A) activities in the AI image generator market are on the rise as companies seek to enhance their technological capabilities and expand their market reach. Larger players are acquiring startups and smaller firms with specialized expertise in AI image generation to strengthen their product portfolios and gain a competitive edge. This trend is leading to consolidation within the industry and the emergence of dominant players.

Regulations surrounding artificial intelligence, particularly in terms of data privacy, intellectual property rights, and ethical use of technology, are influencing the development and deployment of AI image generators. Compliance with regulations such as GDPR and CCPA is becoming increasingly important for companies operating in this space. Stricter regulations may also impact the accessibility and availability of certain AI image generation technologies, especially those that raise concerns regarding privacy or societal implications.

While artificial intelligence image generators offer advanced capabilities for creating and manipulating images, traditional graphic design services still serve as substitutes in certain contexts. However, as AI image generation technology continues to improve and become more accessible, it is gradually replacing some aspects of manual design work. Businesses are leveraging AI image generators to streamline their design processes, reduce costs, and achieve faster turnaround times for creative projects.

The adoption of AI image generators is widespread across various end-user industries, including advertising, entertainment, e-commerce, and healthcare. However, there may be concentrations of usage within specific sectors where the demand for image generation is particularly high. For example, the gaming industry heavily relies on AI image generators for creating immersive environments and character designs. As the technology becomes more democratized, the end-user concentration is likely to diversify further across industries and niche markets.

Component Insights

The software segment dominates the market, with a revenue share of 79% in 2023. AI image generator software incorporates features that enable customization and personalization of the generated images. Users can adjust various parameters, styles, or attributes to create images that align with their requirements and preferences. This customization capability enhances user engagement and provides more tailored and unique visual outputs. Cloud computing is playing a significant role in the AI image generator market. Moreover, deep learning platforms like TensorFlow, PyTorch, and Keras continue to evolve and improve, offering enhanced capabilities for developing AI image generator models. These frameworks provide developers with powerful tools and libraries for building, training, and deploying AI models, making it easier to create sophisticated AI image generator software solutions.

AI image generator services can generate new images based on inputs such as text descriptions, semantic tags, or specific style preferences. These services use deep learning models, such as generative adversarial networks (GANs), to generate images that mimic certain styles, objects, or concepts. Moreover, AI image generator services offer style transfer capabilities, allowing users to apply the visual style of one image to another. Users can transfer artistic styles, such as paintings or visual effects, to their images, creating unique and visually appealing compositions.

End-user Insights

The media and entertainment segment dominates the market with a leading revenue share in 2023. AI image generators are increasingly utilized in the media and entertainment industry to enhance various aspects of content creation, production, and delivery. For example, AI image generators are employed in creating visual effects for films, television shows, and commercials. They can generate realistic and visually stunning computer-generated imagery (CGI) elements, such as virtual environments, creatures, and simulations. AI image generators assist in the seamless integration of CGI with live-action footage, enhancing the overall visual impact of the content. Moreover, AI image generators restore and remaster old or damaged media content. They can enhance image quality, reduce noise, restore color, and repair artifacts, breathing new life into classic films, documentaries, and archival footage.

AI image generators are revolutionizing the e-commerce industry by enhancing the visual experience, improving product visualization, and increasing customer engagement. AI image generators enable virtual try-on experiences for fashion and accessories. Customers can upload their photos or use their device's camera to see how clothing items, eyewear, or accessories would look on them. AI algorithms generate realistic representations of the products on the user's image, allowing them to visualize the fit, style, and overall appearance. This helps customers make informed purchase decisions and reduces the likelihood of returns. Examples of e-commerce platforms utilizing virtual try-on include Warby Parker, based in the U.S, for eyewear, and ASOS, based in London, for clothing.

Regional Insights

North America dominated the market, with a revenue share of 37.5% in 2023. The presence of major technology companies, research institutions, and startups focused on AI development drives innovation and adoption of AI image generator technology. The region has a mature e-commerce industry, which fuels the demand for advanced visual experiences and personalized product recommendations. Moreover, industries such as media and entertainment, gaming, and advertising extensively utilize AI image generator technology in North America.

U.S. AI Image Generator Market Trends

AI image generator market in the U.S. is estimated to account for dominating revenue share of around 75% in the regional market in 2023. This is attributed to a booming demand for AI image generation solutions across diverse industrial sectors, driven by the need for visually compelling content, enhanced user experiences, creative design and artistic expressions and innovative applications of artificial intelligence technology.

Europe AI Image Generator Market Trends

AI Image generator market in Europe is estimated to account for nearly one fourth of the global revenue share in 2023 owing to the substantial investments by the countries in the region. The investments are aimed at AI research and development to maintain competitiveness in the global AI landscape. Government funding, academic partnerships, and corporate initiatives are driving innovation in AI image generation technologies and applications.

The UK AI image generator market is estimated to hold leading share in 2023. The digitalization of banking, insurance, healthcare, and business services in the country is the key driver for the growth of AI technologies. The country also has a well-developed ICT infrastructure, and the increasing number of AI start-ups will significantly contribute to the growth of AI image generator market in the UK.

The AI image generator market in France is projected to expand with highest CAGR of 18.9% during forecast period of 2024 to 2030. This growth is likely fueled by France's vibrant creative industries including fashion, advertising, etc. and a growing tech startup ecosystem that embraces innovation. Further, the confluence of technological advancements, rising digital content needs, and industry adoption also provide impetus to the demand growth.

Asia Pacific AI Image Generator Market Trends

The AI image generator market in Asia Pacific is projected to expand with a highest CAGR over the forecast period of 2024-2023. Countries such as China, Japan, South Korea, and India are leading the adoption of AI technologies. E-commerce giants in the region are integrating AI image generators to enhance the visual experience, improve product discovery, and increase customer engagement. The gaming industry in the Asia Pacific is also utilizing AI image generators for character and world design.

The China AI image generator market is a powerhouse in the Asia Pacific region, holding leading share of over 30% in 2023 and growing with a significant CAGR over the forecast period. China has a strong domestic tech industry, and homegrown AI image generator companies are capturing a significant market share. Super apps, such as WeChat and Alipay, are a defining feature of the Chinese internet ecosystem. AI image generation technology is being integrated into these platforms, allowing users to create personalized content within the app itself.

Key AI Image Generator Company Insights

The AI image generator market is highly competitive, characterized by a diverse range of players offering innovative solutions across various industries. Companies invest heavily in research and development to enhance the capabilities of their AI algorithms, improve image quality, and develop new applications across industries. Innovations such as style transfer, image-to-image translation, and conditional image generation are key areas of focus for driving competitive advantage.

Recent Developments

• In September 2023, OpenAI unveiled DALL-E 3, the latest version of its image-generating software. This advancement, driven by the ChatGPT controller, generates top-notch images in response to natural-language prompts and integrates ethical protections.

• In May 2023, Stability AI launched StableStudio, an open-source iteration of its DreamStudio AI platform, designed specifically for transforming text into images. This release made the technology accessible to developers and creators, empowering them to harness its capabilities and innovate various applications for text-to-image conversion.

• In April 2023, VanceAI introduced VanceAI Art Generator, an AI-driven text-to-image tool fueled by Stable Diffusion technology. This innovative platform enabled users to input text descriptions and produce corresponding artworks. Users can have the flexibility to blend various image types, styles, and artist influences while adjusting sizes, thereby translating their imaginative concepts into captivating visual art.

• In March 2023, Adobe introduced Adobe Firefly, a beta version of a generative AI tool designed to assist users lacking graphic design expertise in crafting images and text effects. Concurrently, Microsoft rolled out Copilot, providing automated content generation for users of 365 and Dynamics 365. These developments in generative AI offered significant assistance and prospects for individuals encountering difficulties with writing, design, or organization.

• In February 2023, Runway AI unveiled Gen-2, a fusion of AI models designed to create brief video clips based on text inputs. Gen-2, an evolution from its forerunner Gen-1, promised superior clip quality and expanded customization features for users.

AI Image Generator Market Report Scope

Global AI Image Generator Market Report Segmentation

This report forecasts revenue growth on global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global AI image generator market on the basis of component, end-user, and region:

• Component Outlook (Revenue, USD Million; 2017 - 2030)

  • Software

  • Services

• End-user Outlook (Revenue, USD Million; 2017 - 2030)

  • Media & Entertainment

  • Healthcare

  • Fashion

  • Social Media

  • E-commerce

  • Others  

• Regional Outlook (Revenue, USD Million; 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • Latin America

    • Brazil

  • Middle East and Africa

    • Kingdom of Saudi Arabia (KSA)

    • UAE

    • South Africa